Exchange Rate Calculator

The exchange rate between the US Dollar (USD) and the South Korean Won (KRW) has experienced notable fluctuations over the past few months. This report provides an analysis of the USD/KRW exchange rate trends from March to May 2025, examining the factors influencing these movements and offering insights into potential future developments.

Exchange Rate Trends: March to May 2025

March 2025:

In March 2025, the USD/KRW exchange rate exhibited moderate volatility. The month began with the exchange rate at approximately 1,461.80 KRW per USD on March 1. Throughout the month, the rate fluctuated, reaching a low of 1,443.57 KRW per USD on March 17 and peaking at 1,470.31 KRW per USD on March 28. The average exchange rate for March was around 1,452.24 KRW per USD. (exchangerates.org.uk)

April 2025:

April saw a continuation of the fluctuating trend, with the exchange rate maintaining a range between 1,443.87 KRW and 1,502.56 KRW per USD. The average exchange rate for April was approximately 1,473.22 KRW per USD. (walletinvestor.com)

May 2025:

In May, the USD/KRW exchange rate experienced a slight upward trend. The exchange rate ranged from 1,444.39 KRW to 1,507.55 KRW per USD, with an average of 1,483.78 KRW per USD. (coincodex.com)

Factors Influencing Exchange Rate Movements

Several factors have contributed to the observed fluctuations in the USD/KRW exchange rate during this period:

1. US Currency Policy and Trade Negotiations:

In mid-May, the US dollar weakened amid concerns over the country's currency policy and ongoing trade negotiations, particularly with Asian nations. Speculation that the US aimed to weaken the dollar as part of trade agreements bolstered Asian currencies, notably the South Korean won, which rose 0.8% to 1,396.22 per dollar following a 0.6% gain the previous day. (reuters.com)

1. South Korea's Economic Performance:

South Korea's economic indicators, including export performance and GDP growth, have a direct impact on the KRW's strength. Positive economic data can bolster the won, while negative data may lead to depreciation against the USD.

1. Global Economic Conditions:

Global economic events, such as changes in commodity prices, geopolitical tensions, and economic performance in major economies, can influence investor sentiment and, consequently, currency exchange rates.

Future Outlook

Looking ahead, several factors could influence the USD/KRW exchange rate:

• US Monetary Policy:

Decisions by the Federal Reserve regarding interest rates and monetary policy will continue to impact the USD's strength. Any indications of rate hikes or policy tightening could lead to USD appreciation against the KRW.

• South Korea's Economic Policies:

Measures taken by the South Korean government to stimulate economic growth or control inflation will affect the KRW's value. For instance, interventions in the foreign exchange market or changes in interest rates can influence the exchange rate.

• Global Trade Dynamics:

Developments in global trade, including the resolution or escalation of trade disputes, will play a significant role in determining the USD/KRW exchange rate. Improved trade relations between the US and South Korea could strengthen the KRW, while tensions may have the opposite effect.

Conclusion

The USD/KRW exchange rate has experienced fluctuations influenced by a combination of US currency policies, South Korea's economic performance, and global economic conditions. While the exchange rate has shown a slight upward trend in recent months, future movements will depend on monetary policies, economic indicators, and global trade dynamics. Investors and businesses engaged in USD/KRW transactions should closely monitor these factors to make informed decisions.